Monthly Savings Account Calculator
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Reviewed by Calculator Editorial Team
Track your savings growth with our monthly savings account calculator. This tool helps you estimate how much you'll save over time by making regular monthly deposits into a savings account with compound interest.
How to Use This Calculator
Using our monthly savings account calculator is simple. Follow these steps:
- Enter your monthly deposit amount in the first field.
- Select the annual interest rate you expect to earn on your savings.
- Choose the number of years you plan to save.
- Click the Calculate button to see your projected savings.
The calculator will display your total savings at the end of each year, showing how your deposits grow with compound interest over time.
Formula Explained
The calculation uses the compound interest formula for monthly deposits:
Future Value = P × [(1 + r/n)^(nt) - 1] / (r/n)
Where:
- P = Monthly deposit amount
- r = Annual interest rate (in decimal)
- n = Number of times interest is compounded per year (12 for monthly)
- t = Number of years
This formula accounts for the growth of your monthly deposits with compound interest over time.
Worked Example
Let's say you deposit $200 each month into a savings account that earns 3% annual interest. Here's how your savings would grow over 5 years:
| Year | Total Savings |
|---|---|
| 1 | $2,533.14 |
| 2 | $5,221.45 |
| 3 | $8,064.93 |
| 4 | $11,063.58 |
| 5 | $14,217.40 |
Notice how the interest compounds each year, making your savings grow faster over time.
Frequently Asked Questions
How accurate is this calculator?
This calculator provides an estimate based on the inputs you provide. Actual results may vary depending on market conditions and other factors.
Does this calculator account for taxes?
No, this calculator does not account for taxes. The interest earned is shown before taxes.
Can I use this for retirement planning?
While this calculator can help estimate savings growth, it's not a substitute for professional retirement planning advice.